Real estate developers who use real estate buyers’ money for other purposes risk being sanctioned with 1% of their turnover, according to an amendment admitted to the bill to supplement Article 22 of Law no. 10/1995 on quality in construction, passed by the Senate on Monday.

The bill was adopted with 84 votes „for”, nine „against” and 28 abstentions.

Members of the Senate’s Legal and Administration Committees recently admitted several amendments, along with the report on the draft normative act.

By registering mandatory promises in the land registry, there will no longer be the possibility for a developer to promise an apartment to more than one person. The advance payment paid by the buyer is capped at 15%, after the issuance of the construction permit.

„The amendments that I discussed with my colleagues in the governing coalition have clearly established the registration of mandatory promises in the land registry. With this legal provision, we have blocked any possibility that a developer can promise to more than one person, we have limited the advance paid by the person to 15% and, subsequently, payments will be made based on the stages of development. Upon completion of the structure – 25%, upon completion of the installations – 25%”, PSD Senator Daniel Zamfir previously stated.

He emphasized that there would be the possibility for the buyer to have the advance paid based on the stage that certifies that the respective real estate development is under execution, along with the certainty that the money is not used for any other purpose.

„We have also established sanctions, we have proposed 1% of the turnover for real estate developers who use buyers’ money for other purposes. We have established – consumers should be passed over, in the event of bankruptcy, to be privileged creditors, that is, they should be the first, after the Romanian state, to recover any amounts, if there is a possibility of bankruptcy. We are in a situation where the developer is required to guarantee that this real estate development is done correctly, and the buyer should have the certainty that he obtains a product based on the work he paid for”, explained the PSD senator.

The leader of the PNL senators, Daniel Fenechiu, mentioned that a provision was introduced in the draft normative act that, in the situation where the prospective buyers are assisted by a lawyer, the notary should grant a 25% discount. He also advanced the possibility of modifying the Insolvency Law in order to support prospective buyers.

Daniel Fenechiu rejects the USR proposal to conclude an insurance that can guarantee the promising buyer that he can recover the advance paid, the liberal mentioning that the Romanian market in the field is not yet ready for this type of product.

The bill will enter for debate and vote in the plenary session of the Chamber of Deputies, the legislative decision-making forum in this case.

AGERPRES